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Pentagon Awards $800 Million Contracts to Anthropic, Google, OpenAI and xAI

The DoD’s commercial-first AI strategy will deploy autonomous agents across critical mission areas.

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Overview

  • The Chief Digital and Artificial Intelligence Office granted each company a contract with a ceiling of $200 million, bringing total potential awards to $800 million.
  • The agreements charge the firms with creating agentic AI workflows capable of analyzing classified data and issuing actionable recommendations.
  • xAI rolled out Grok for Government on the GSA schedule, making its frontier AI models purchasable by all federal agencies.
  • Google’s Distributed Cloud achieved IL-6 accreditation in June, clearing the way for sensitive defense workloads to run on its platform.
  • These awards build on June’s OpenAI prototype contract and support the DoD’s FY 2026 budget request for multibillion-dollar AI and autonomy investments.